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Republic of the Philippines
Province of Bohol
Municipality of Sikatuna
CONSOLIDATED BALANCE SHEET
As of December 31, 2011
ASSETS
CURRENT ASSETS
Cash ( Note 1 ) P 7,181,413.49
Receivables ( Note 2 ) 1,613,279.62
Inventories ( Note 3 ) 578,748.79
TOTAL CURRENT ASSETS P 9,373,441.90
PROPERTY, PLANT EQUIPMENT ( Note 4 )
Land and Land Improvements P 3,083,763.38
Buildings 16,027,424.64
Office Equipment, Furniture and Fixtures 3,720,599.97
Machineries and Equipment 4,655,886.65
Transportation Equipment 2,400,579.15
Other Property, Plant and Equipment 1,138,003.80
Public Infrastructures 9,644,217.12
Less : Accumulated Depreciation (4,084,674.34)
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET P 36,585,800.37
OTHER ASSETS
Other Assets P 173,077.57
TOTAL ASSETS P 46,132,319.84
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Payables Accounts ( Note 5 ) P 2,246,355.74
Inter – Agency Payables ( Note 6 ) 3,871,008.22
Other Liability Accounts ( Note 7 ) 588,299.12
TOTAL CURRENT LIABILITIES P 6,705,663.08
LONG – TERM LIABILITIES
Loans Payable – Domestic ( Note 8 ) P 3,119,494.25
DEFERRED CREDITS
Deferred Real Property Income ( Note 9 ) P 265,081.83
Deferred Special Education Tax Income 209,121.83
Other Deferred Credits 1,074.15
TOTAL LIABILITIES P 10,300,435.14
GOVERNMENT EQUITY ( Note 10 ) P 35,831,884.70
TOTAL LIABILITIES AND EQUITY P 46,132,319.84
( See accompanying notes to financial statements )
Republic of the Philippines
Province of Bohol
Municipality of Sikatuna
STATEMENT OF INCOME AND EXPENSES
CONSOLIDATED
For the Period Ended December 31, 2011
TAX REVENUE
Local Taxes ( Note 11 ) P 752,532.54
GENERAL INCOME ACCOUNTS
Internal Revenue Allotment 25,478,747.00
Permits and Licenses ( Note 12 ) 77,966.50
Services Income ( Note 13 ) 252,397.25
Business Income ( Note 14 ) 1,838,805.11
Other Income
Interes Income 29,517.33
Miscellaneous Income 112,997.44
TOTAL OPERATING INCOME P 28,542,963.17
LESS : OPERATING EXPENSES
Personal Services ( Note 15 ) P 16,703,230.92
Maintenance and Other Operating Expenses ( Note 16 ) 9,273,516.73
Non Cash Expenses – Depreciation ( Note 17 ) 1,527,652.81
TOTAL OPERATING EXPENSES P 27,504,400.46
INCOME FROM OPERATIONS P 1,038,562.71
LESS : FINANCIAL EXPENSES
Bank Charges 4,200.00
Interest Expenses 392,761.06
TOTAL FINANCIAL EXPENSES P 396,961.06
INCOME BEFORE SUBSIDIES, DONATIONS & EXTRAORDINARY ITEMS P 641,601.65
Less : Subsidy to LGU’s P 333,753.00
Subsidy to NGO’s/PO;s P 333,753.00
NET INCOME/(LOSS) P 307,848.65
( See accompanying notes to financial statements )
Republic of the Philippines
Province of Bohol
Municipality of Sikatuna
STATEMENT OF CASHFLOWS
CONSOLIDATED
For the Period Ended December 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Inflows
Share from Internal Revenue Allotment P 25,478,747.00
Collection from Taxpayers 795,454.98
Receipts from Sale of Goods and Services 2,169,168.86
Interest Income 29,517.33
Other Receipts 3,460,564.35
TOTAL CASH INFLOWS P 31,933,452.52
Cash Outflows
Payment to Suppliers/Creditors 9,255,632.73
Payment to Employees 16,703,230.92
Interest Expense 392,761.06
Other Disbursements 2,837,340.83
TOTAL CASH OUTFLOWS P 29,188,965.54
NET CASH FROM OPERATING ACTIVITIES P 2,744,486.98
CASH FLOWS FROM INVESTING ACTIVITIES
Cash Inflows
Sale of Property, Plant and Equipment P
TOTAL CASH INFLOWS P
Cash Outflows
Purchase of Property, Plant and Equipment 1,854,466.64
TOTAL CASH OUTFLOWS P 1,854,466.64
NET CASH FROM INVESTING ACTIVITIES P (1,854,466.64)
NET DECREASE IN CASH P 890,020.34
CASH AT THE BEGINNING OF THE PERIOD P 6,291,393.15
CASH AT THE END OF THE PERIOD P 7,181,413.49
NOTES TO FINANCIAL STATEMENTS
I. AGENCY BACKGROUND
The Municipality of Sikatuna was created by virtue of Executive Order No. 88 issued on December 5, 1917. It was named in honor of the great Boholano Chieftain, who displayed courage and bravery in leading Boholanos to active victory.
Sikatuna is comprised of ten (10) barangays, and has a total land area of 3,822 hectares. It is a fifth class municipality, as classified by the Department of Interior and Local Government. Commercial activity in this municipality is marginal as most of the commercial establishment are suited only in the Poblacion. Sikatuna has just started in its journey in the field of tourism, the Sikatuna Tree Park.
The municipal government of Sikatuna is headed by Mayor Jose M. Ellorimo Jr. A Vice Mayor and Ten (10) Sangguniang Bayan Members comprised the Legislative Department responsible for the formulation of resolutions, laws and ordinances. Further, there are eleven (11) department heads and twenty one (21) support staff commissioned to oversee various sectors and other priority areas such as treasury, accounting, budget, engineering, social welfare, planning, agriculture, assessor, health, registry and secretary to sanggunian.
The LGU of Sikatuna, Bohol have provided job opportunities to its constituents  thru job orders and supported the LGU in the discharge of various activities, programs, and projects.
II. BASIS OF FINANCIAL STATEMENT
The Financial Statement present the financial position of the municipality, in conformity with applicable laws, rules and regulations and generally accepted and prescribed state accounting principles and standards applied on a consistent basis.
III. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.1 The Municipality uses the accrual basis of accounting. All expenses are recognized when incurred and reported in the financial statements in the period to which they relate. Income is on accrual basis except for transaction, where accrual basis is impractical or required by Law.
3.2 The modified obligation system is used to record obligations incurred. Separate registries are maintained to control allotment and obligations for each class of allotment.
3.3 Supplies and materials purchased are taken up directly as supplies expense and not recorded under Perpetual Inventory System. The inventories in the financial statements refer to items already issued to the employees but were still recorded in the books.
3.4 Property, Plant and Equipment with the corresponding useful life as indicated in the Manual, is carried at cost.
3.5 For assets under construction, expenses incurred during the construction of the Project are Capitalized.
3.6 Payable accounts are recognized and recorded in the books of accounts upon acceptance of the goods and rendition of services to the agency.
3.7 Accounts are classified to conform with the Revised Chart of Accounts prescribed under the New Government Accounting System (NGAS).
3.8 The agency has computed depreciations using the straight-line method as per COA circular no. 2003-07. Computations of depreciations based on its total balances.  The LGU was still gathering data inorder to establish its Detailed Schedules of Inventory.
3.9 Fundamental errors of prior years are corrected using the Prior Year’s Adjustment account. Errors affecting current year’s operations are charged to the current year’s accounts.
BREAKDOWN / COMPOSITION AND EXPLANATORY NOTES ON MAJOR ACCOUNTS
Note 1 – CASH AND OTHER CASH ACCOUNTS
This account consists of:
Accounts Amount
101 Cash in Vault P 10,889.38
103 Cash – Disbursing Officers
104 Petty Cash Fund
111 Cash In Bank – Local Currency, Current Account 2,168,853.79
112 Cash In Bank – Local Currency, Savings Account 5,001,670.32
Total P 7,181,413.49
The cash in vault was deposited in January, 2012.
Note 2 – RECEIVABLES
Details of this account were presented as follows:
Accounts Amount
121 Accounts Receivable P 81,409.47
123 Due from Officers and Employees 11,692.39
126 Loans Receivable – Others 82,949.00
127 Real Property Tax Receivable 265,081.83
128 Special Education Tax Receivable 209,121.83
144 Due from Other Funds 70,000.00
146 Receivables – Disallowances/Charges 11,368.52
148 Advances to Officers and Employees 774,984.08
149 Other Receivables 106,672.50
Total P 1,613,279.62
Due from Officers and Employees represent withholding tax on compensation balances of the Municipal Officials who were separated form service effective July, 1, 2010 and Municipal Employees as of December, 31, 2011. Loans Receivables are loans granted to qualified beneficiaries funded by DSWD-SEA K to augment their source of income. Office of the MSWDO failed to submit complete data in this regard, adjustments/reconciliation of this account is pending upon availability of pertinent papers. RPT Receivables was set up at the beginning of the year which amount was certified by the Municipal Assessor. Advances to Officers and Employees are outstanding/unliquidated cash advances granted to Municipal Officials and Employees.
Note 3 – INVENTORIES
Breakdown of this account includes the following:
Accounts Amount
155 Office Supplies Inventory P 394,944.58
156 Accountable Forms Inventory 6,070.00
165 Other Supplies Inventory 175,234.21
169 Livestock Inventory 2,500.00
Total P 578,748.79
Office Supplies and Other Supplies Inventory represent unexpendable supplies issued to different offices of the Municipality which is subject to adjustment after a physical inventory is conducted to determine its usefulness and existence . While Livestock inventory is subject to reconciliation upon submission of pertinent documents from the Department of Agriculture before making any adjustment as to its proper valuation.
Note 4 – PROPERTY, PLANT AND EQUIPMENT
This account includes the following:
Accounts Amount
Land and Land Improvements
201 Land P 18,578.28
202 Land Improvements 3,065,185.10
Total P 3,083,763.38
Buildings
211 Office Buildings P 4,590,166.58
212 School Buildings 238,707.71
213 Hospitals and Health Centers 422,018.92
214 Markets and Slaughterhouses 4,464,369.66
215 Other Structures 6,312,161.77
Total P 16,027,424.64
Office Equipment, Furniture and Fixtures
221 Office Equipment P 1,110,972.36
222 Furniture and Fixtures 463,238.15
223 IT Equipment and Software 2,146,389.46
Total P 3,720,599.97
Machineries and Equipment
226 Machineries P 3,571,000.00
229 Communication Equipment 813,922.25
233 Medical, Dental and Laboratory Equipment 151,698.00
234 Military and Police Equipment 57,750.00
235 Sports Equipment 61,516.40
Total P 4,655,886.65
Transportation Equipment
241 Motor Vehicles P 2,400,579.15
Total P 2,400,579.15
Other Property, Plant and Equipment
250 Other Property, Plant and Equipment P 1,138,003.80
Total P 1,138,003.80
Public Infrastructures
252 Parks, Plazas and Monuments P 219,514.94
254 Artesian Wells, Reservoirs, Pumping Stations and Conduits P 9,424,702.18
Total P 9,644,217.12
Grand – Total P 40,670,474.71
Less : Accumulated Depreciation
302 Land Improvements P 52,792.67
311 Office Buildings 136,985.38
312 School Buildings 10,741.85
313 Hospitals and Health Centers 12,681.20
314 Market and Slaughterhouses 83,574.08
315 Other Structures 175,521.26
321 Office Equipment 172,273.30
322 Furnitures and Fixtures 37,715.85
323 IT Equipment & Software 572,885.22
326 Machineries 1,847,992.50
329 Communication Equipment 68,893.60
333 Medical, Dental and Laboratory Equipment 13,652.82
334 Military and Police Equipment 5,197.50
341 Motor Vehicles 645,890.87
350 Other PPE 247,876.24 P 4,084,674.34
PROPERTY, PLANT AND EQUIPMENT, NET p 36,585,800.37
Property, Plant and Equipment were depreciated using straight-line method with 10% residual value on its total balances. An inventory committee was already created and in the process of gathering data, conducting inspection and appraisal of the above properties in order to examine its existence, proper valuation and generate Detailed Schedule of Inventory.
Note 5 – PAYABLES ACCOUNTS
Accounts Payables represent the unpaid balance of CY2011 obligations/indebtedness to suppliers arising from the purchase of goods and services.
Note 6 – INTER – AGENCY PAYABLES
This account includes the following:
Accounts Amount
412 Due to BIR P 188,730.41
413 Due to GSIS 284,218.72
414 Due to PAG-IBIG 50,886.16
415 Due to PHILHEALTH 33,806.88
416 Due to Other NGA’s 2,340,808.58
417 Due to Other GOCC’s (437.90)
418 Due to LGU’s 972,995.37
Total P 3,871,008.22
Note 7 – OTHER LIABILITY ACCOUNTS
This account includes the following:
Accounts Amount
429 Tax Refunds Payable P 3,164.42
439 Other Payables 585,134.70
Total P 588,299.12
Tax refund payable represent the overwitheld tax on compensation of CY2010. The other liability accounts represent the amount collected or withheld from officers and employees for the account of private associations/entities in payment for salary loans.
Note 8 – LOANS PAYABLES – DOMESTIC
The Department of Finance on CY2005 and CY2006 grant, thru the Municipal Development Fund Office, a loan amounting to P3,736,737.39 to the Municipality, payable in 15 years with grace period of 3 years under Community Based Resource Management Project (CBRMP II). The said funds were used to purchase farm equipment and cargo truck, improvement of water system and constructions of farm to market roads and other infrastructures which are essential to the promotion of the general welfare of the community.
Note 9 – DEFERRED CREDITS
Deferred Real Property Income and Deferred Special Education Tax Income represent the reciprocal account for Real Property Tax Receivable and Sepecial Tax Receivables respectively, that was recognized at the beginning of the year.
Note 10 – GOVERNMENT EQUITY
Details of this account were presented as follows:
Government Equity – Beginning Balance P 35,791,787.10
Adjustment to Beginning Balance
Add(Deduct)
Current Operations 307,848.65
Prior Year’s Adjustments – Erroneous Entry (267,751.05)
Government Equity – Ending Balance P 35,831,884.70
Prior years adjustments represents the liquidation of cash advances for confidential and intelligence fund amounting to P200,000 for CY2009 and CY2010, under credit notice no. 2010-11-664-L, 2011-03-179-L and 2011-08-320-L and the remaining amount represents the correction of erroneous entry and liquidation of cash advances for travel. Result of operations for CY2011 shown P307,848.65 net income.
Note 11 – LOCAL TAXES
Breakdown of this account includes the following:
Accounts Amount
582 Business Tax P 195,020.00
583 Community Tax 46,897.33
588 Real Property Tax 264,201.26
954 Discount on Real Property Taxes 78,018.04 186,183.22
591 Special Education Tax 330,251.56
955 Discount on Special Education Tax 78,018.04 252,233.52
599 (1) Fines and Penalties – Local taxes 9,026.37
599 (2) Fines and Penalties – Local taxes 63,172.10
Total P 752,532.54
Note 12 – PERMITS AND LICENSES
This account includes the following:
Accounts Amount
601 Fees on Weights and Measures P
605 Permit Fees 60,674.70
606 Registration Fees 16,091.00
608 Other Permits and Licenses 799.30
609 Fines and Penalties – Permits and Licenses 401.50
Total P 77,966.50
Note 13 – SERVICE INCOME
Breakdown of this account includes the following:
Accounts Amount
613 Clearance and Certification Fees P 84,081.75
616 Garbage Fees 2,847.00
617 Inspection Fees 5,405.00
619 Medical, Dental and Laboratory Fees 20,085.00
628 Other Service Income 139,978.50
Total P 252,397.25
Note 14 – BUSINESS INCOME
This account includes the following:
Accounts Amount
633 Income from Cemetery Operations P 75.00
636 Income from Markets 248,758.17
637 Income from Slaughterhouses 25,123.00
639 Income from Waterworks Systems 1,468,139.55
649 Fines and Penalties – Business Income 96,709.39
Total P 1,838,805.11
Note 15 – PERSONAL SERVICES
Details of this account were presented as follows:
Accounts Amount
701 Salaries and Wages – Regular P 9,788,752.73
711 Personnel Economic Relief Allowance (PERA) 1,056,000.00
713 Representation Allowance (RA) 978,600.00
714 Transportation Allowance (TA) 978,600.00
715 Clothing/Uniform Allowance 176,000.00
716 Subsistence, Laundry and Quarter Allowance 99,000.00
717 Productivity Incentive Allowance 64,000.00
720 Honoraria 7,200.00
721 Hazard Pay 41,073.00
724 Cash Gift 220,000.00
725 Year End Bonus 816,141.50
731 Life and Retirement Insurance Contributions 1,174,737.13
732 PAG-IBIG Contributions 52,800.00
733 PHILHEALTH Contributions 118,987.50
734 ECC Contributions 48,222.76
742 Terminal Leave Benefits 261,996.68
749 Other Personnel Benefits 821,119.62
Total P 16,703,230.92
Note 16 – MAINTENANCE AND OTHER OPERATING EXPENSES
This account includes the following:
Accounts Amount
751 Traveling Expenses – Local P 647,236.79
753 Training Expenses 509,750.00
755 Office Supplies Expenses 415,022.92
756 Accountable Forms Expenses 69,235.25
759 Drugs and Medicines Expenses 271,884.89
760 Medical, Dental and Laboratory Supplies Expenses 30,145.00
761 Gasoline, Oil and Lubricants Expenses 247,432.46
762 Agricultural Supplies Expenses 2,720.00
765 Other Supplies Expenses 221,458.23
767 Electricity Expenses 1,788,236.65
771 Postage and Deliveries 2,240.00
772 Telephone Expenses – Landline 27,316.65
773 Telephone Expenses – Mobile 196,240.00
778 Membership Dues and Contributions to Organizations 16,200.00
786 Subscriptions Expenses 3,669.00
794 Environment/Sanitary Services 218,924.60
795 General Services 1,508,325.00
796 Janitorial Services 144,620.00
811 Repairs and Maintenance – Office Buildings 194,369.79
814 Repairs and Maintenance – Markets and Slaughterhouses 34,578.32
815 Repairs and Maintenance – Other Structures 203,730.50
821 Repairs and Maintenance – Office Equipment 10,560.00
823 Repairs and Maintenance – IT Equipment and Software 12,400.00
829 Repairs and Maintenance – Communication Equipment 1,500.00
841 Repairs and Maintenance – Motor Vehicles 89,991.10
851 Repairs and Maintenance – Roads, Highways and Bridges 72,170.00
852 Repairs and Maintenance – Parks, Plazas and Monuments 315,172.28
854 Repairs and Maintenance – Artesian Wells, Reservoirs, Pumping Stattions and Conduits 231,745.53
878 Donations 41,000.00
884 Miscellaneous Expenses 19,904.11
892 Fidelity Bond Premiums 30,450.00
893 Insurance Expenses 498,567.93
969 Other Maintenance and Opertaing Expenses 1,196,719.73
Total P 9,273,516.73
General Services expenses shown in the above accounts were wages of Job Orders employees for CY2011. Insurance expenses amounting to P494,200.40 represent payment for Medicare sa Masa for the whole year of 2011.
Note 17 – DEPRECIATION EXPENSES
This account includes the following:
Accounts Amount
902 Depreciation – Land Improvements P 52,792.67
911 Depreciation – Office Buildings 136,985.38
912 Depreciation – School Buildings 10,741.85
913 Depreciation – Hospitals and Health Centers 12,534.57
914 Depreciation – Markets and Slaughterhouses 83,574.08
915 Depreciation – Other Structures 85,029.69
921 Depreciation – Office Equipment 168,484.59
922 Depreciation – Furniture and Fixtures 33,733.65
923 Depreciation – IT Equipment 299,129.57
926 Depreciation – Machineries 214,260.00
929 Depreciation – Communication Equipment 62,903.00
933 Depreciation – Medical, Dental and Laboratory Equipment 13,652.82
934 Depreciation – Military and Police Equipment 5,197.50
941 Depreciation – Motor Vehicles 170,138.46
950 Depreciation – Other Property, Plant and Equipment 178,494.98
Total P 1,527,652.81
Property, Plant and Equipment were depreciated using straight-line method, with 10% residual value, on its total balances. An inventory committee was already created and in the process of gathering data, conducting inspection and appraisal of the above properties in order to examine its existence, proper valuation and to generate Detailed Schedule of Inventory.
Republic of the Philippines
Province of Bohol
Municipality of Sikatuna
GENERAL FUND CONSOLIDATED BALANCE SHEET
As of December 31, 2011
ASSETS
CURRENT ASSETS
Cash ( Note 1 ) P 5,987,268.33
Receivables ( Note 2 ) 1,126,558.23
Inventories ( Note 3 ) 535,979.38
TOTAL CURRENT ASSETS P 7,649,805.94
PROPERTY, PLANT EQUIPMENT ( Note 4 )
Land and Land Improvements P 605,163.53
Buildings 10,116,502.44
Office Equipment, Furniture and Fixtures 3,312,104.92
Machineries and Equipment 4,479,370.25
Transportation Equipment 2,350,879.15
Other Property, Plant and Equipment 999,671.50
Public Infrastructures 7,883,881.34
Less : Accumulated Depreciation (3,860,854.37)
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET P 25,886,718.76
OTHER ASSETS
Other Assets P 165,478.37
TOTAL ASSETS P 33,702,003.07
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Payables Accounts ( Note 5 ) P 2,216,681.74
Inter – Agency Payables ( Note 6 ) 1,432,642.67
Other Liability Accounts ( Note 7 ) 249,112.11
TOTAL CURRENT LIABILITIES P 3,898,436.52
LONG – TERM LIABILITIES
Loans Payable – Domestic ( Note 8 ) P 3,119,494.25
DEFERRED CREDITS
Deferred Real Property Income ( Note 9 ) P 265,081.83
TOTAL LIABILITIES P 7,283,012.60
GOVERNMENT EQUITY ( Note 10 ) P 26,418,990.47
TOTAL LIABILITIES AND EQUITY P 33,702,003.07
( See accompanying notes to financial statements )
Republic of the Philippines
Province of Bohol
Municipality of Sikatuna
STATEMENT OF INCOME AND EXPENSES
GENERAL FUND CONSOLIDATED
For the Period Ended December 31, 2011
TAX REVENUE
Local Taxes ( Note 11 ) P 465,203.42
GENERAL INCOME ACCOUNTS
Internal Revenue Allotment 25,478,747.00
Permits and Licenses ( Note 12 ) 77,966.50
Services Income ( Note 13 ) 252,397.25
Business Income ( Note 14 ) 1,838,805.11
Other Income
Interes Income 27,626.78
Miscellaneous Income 112,997.44
TOTAL OPERATING INCOME P 28,253,743.50
LESS : OPERATING EXPENSES
Personal Services ( Note 15 ) P 16,703,230.92
Maintenance and Other Operating Expenses ( Note 16 ) 8,992,181.06
Non Cash Expenses – Depreciation ( Note 17 ) 1,527,652.81
TOTAL OPERATING EXPENSES P 27,223,064.79
INCOME FROM OPERATIONS P 1,030,678.71
LESS : FINANCIAL EXPENSES
Bank Charges 4,200.00
Interest Expenses 392,761.06
TOTAL FINANCIAL EXPENSES P 396,961.06
INCOME BEFORE SUBSIDIES, DONATIONS & EXTRAORDINARY ITEMS P 633,717.65
Less : Subsidy to LGU’s P 333,753.00
Subsidy to NGO’s/PO;s P 333,753.00
NET INCOME/(LOSS) P 299,964.65
( See accompanying notes to financial statements )
Republic of the Philippines
Province of Bohol
Municipality of Sikatuna
STATEMENT OF CASHFLOWS
GENERAL FUND CONSOLIDATED
For the Period Ended December 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Inflows
Share from Internal Revenue Allotment P 25,478,747.00
Collection from Taxpayers 465,203.42
Receipts from Sale of Goods and Services 2,169,168.86
Interest Income 27,626.78
Other Receipts 844,057.58
TOTAL CASH INFLOWS P 28,984,803.64
Cash Outflows
Payment to Suppliers/Creditors 8,992,181.06
Payment to Employees 16,703,230.92
Interest Expense 392,761.06
Other Disbursements 517,487.03
TOTAL CASH OUTFLOWS P 26,605,660.07
NET CASH FROM OPERATING ACTIVITIES P 2,379,143.57
CASH FLOWS FROM INVESTING ACTIVITIES
Cash Inflows
Sale of Property, Plant and Equipment P
TOTAL CASH INFLOWS P
Cash Outflows
Purchase of Property, Plant and Equipment 1,742,782.54
TOTAL CASH OUTFLOWS P 1,742,782.54
NET CASH FROM INVESTING ACTIVITIES P (1,742,782.54)
NET DECREASE IN CASH P 636,361.03
CASH AT THE BEGINNING OF THE PERIOD P 5,350,907.30
CASH AT THE END OF THE PERIOD P 5,987,268.33
NOTES TO FINANCIAL STATEMENTS
I. AGENCY BACKGROUND
The Municipality of Sikatuna was created by virtue of Executive Order No. 88 issued on December 5, 1917. It was named in honor of the great Boholano Chieftain, who displayed courage and bravery in leading Boholanos to active victory.
Sikatuna is comprised of ten (10) barangays, and has a total land area of 3,822 hectares. It is a fifth class municipality, as classified by the Department of Interior and Local Government. Commercial activity in this municipality is marginal as most of the commercial establishment are suited only in the Poblacion. Sikatuna has just started in its journey in the field of tourism, the Sikatuna Tree Park.
The municipal government of Sikatuna is headed by Mayor Jose M. Ellorimo Jr. A Vice Mayor and Ten (10) Sangguniang Bayan Members comprised the Legislative Department responsible for the formulation of resolutions, laws and ordinances. Further, there are eleven (11) department heads and twenty one (21) support staff commissioned to oversee various sectors and other priority areas such as treasury, accounting, budget, engineering, social welfare, planning, agriculture, assessor, health, registry and secretary to sanggunian.
The LGU of Sikatuna, Bohol have provided job opportunities to its constituents  thru job orders and supported the LGU in the discharge of various activities, programs, and projects.
II. BASIS OF FINANCIAL STATEMENT
The Financial Statement present the financial position of the municipality, in conformity with applicable laws, rules and regulations and generally accepted and prescribed state accounting principles and standards applied on a consistent basis.
III. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.1 The Municipality uses the accrual basis of accounting. All expenses are recognized when incurred and reported in the financial statements in the period to which they relate. Income is on accrual basis except for transaction, where accrual basis is impractical or required by Law.
3.2 The modified obligation system is used to record obligations incurred. Separate registries are maintained to control allotment and obligations for each class of allotment.
3.3 Supplies and materials purchased are taken up directly as supplies expense and not recorded under Perpetual Inventory System. The inventories in the financial statements refer to items already issued to the employees but were still recorded in the books.
3.4 Property, Plant and Equipment with the corresponding useful life as indicated in the Manual, is carried at cost.
3.5 For assets under construction, expenses incurred during the construction of the Project are Capitalized.
3.6 Payable accounts are recognized and recorded in the books of accounts upon acceptance of the goods and rendition of services to the agency.
3.7 Accounts are classified to conform with the Revised Chart of Accounts prescribed under the New Government Accounting System (NGAS).
3.8 The agency has computed depreciations using the straight-line method as per COA circular no. 2003-07. Computations of depreciations based on its total balances.  The LGU was still gathering data inorder to establish its Detailed Schedules of Inventory.
3.9 Fundamental errors of prior years are corrected using the Prior Year’s Adjustment account. Errors affecting current year’s operations are charged to the current year’s accounts.
BREAKDOWN / COMPOSITION AND EXPLANATORY NOTES ON MAJOR ACCOUNTS
Note 1 – CASH AND OTHER CASH ACCOUNTS
This account consists of:
Accounts Amount
101 Cash in Vault P 10,886.44
103 Cash – Disbursing Officers
104 Petty Cash Fund
111 Cash In Bank – Local Currency, Current Account 974,711.57
112 Cash In Bank – Local Currency, Savings Account 5,001,670.32
Total P 5,987,268.33
The cash in vault was deposited in January, 2012.
Note 2 – RECEIVABLES
Details of this account were presented as follows:
Accounts Amount
121 Accounts Receivable P 2,399.47
123 Due from Officers and Employees 11,692.39
126 Loans Receivable – Others 82,949.00
127 Real Property Tax Receivable 265,081.83
146 Receivables – Disallowances/Charges ( Sched 1 ) 11,368.52
148 Advances to Officers and Employees ( Sched 2 ) 753,067.02
Total P 1,126,558.23
Due from Officers and Employees represent withholding tax on compensation balances of the Municipal Officials who were separated form service effective July, 1, 2010 and Municipal Employees as of December, 31, 2011. Loans Receivables are loans granted to qualified beneficiaries funded by DSWD-SEA K to augment their source of income. Office of the MSWDO failed to submit complete data in this regard, adjustments/reconciliation of this account is pending upon availability of pertinent papers. RPT Receivables was set up at the beginning of the year which amount was certified by the Municipal Assessor. Advances to Officers and Employees are outstanding/unliquidated cash advances granted to Municipal Officials and Employees.
Note 3 – INVENTORIES
Breakdown of this account includes the following:
Accounts Amount
155 Office Supplies Inventory P 394,944.58
156 Accountable Forms Inventory 6,070.00
165 Other Supplies Inventory 132,464.80
169 Livestock Inventory 2,500.00
Total P 535,979.38
Office Supplies and Other Supplies Inventory represent unexpendable supplies issued to different offices of the Municipality which is subject to adjustment after a physical inventory is conducted to determine its usefulness and existence . While Livestock inventory is subject to reconciliation upon submission of pertinent documents from the Department of Agriculture before making any adjustment as to its proper valuation.
Note 4 – PROPERTY, PLANT AND EQUIPMENT
This account includes the following:
Accounts Amount
Land and Land Improvements
201 Land P 18,578.28
202 Land Improvements 586,585.25
Total P 605,163.53
Buildings
211 Office Buildings P 4,590,166.58
212 School Buildings 238,707.71
213 Hospitals and Health Centers 417,818.92
214 Markets and Slaughterhouses 2,944,869.08
215 Other Structures 1,924,940.15
Total P 10,116,502.44
Office Equipment, Furniture and Fixtures
221 Office Equipment P 998,075.56
222 Furniture and Fixtures 435,983.40
223 IT Equipment and Software 1,878,045.96
Total P 3,312,104.92
Machineries and Equipment
226 Machineries P 3,571,000.00
229 Communication Equipment 698,922.25
233 Medical, Dental and Laboratory Equipment 151,698.00
234 Military and Police Equipment 57,750.00
Total P 4,479,370.25
Transportation Equipment
241 Motor Vehicles P 2,350,879.15
Total P 2,350,879.15
Other Property, Plant and Equipment
250 Other Property, Plant and Equipment P 999,671.50
Total P 999,671.50
Public Infrastructures
252 Parks, Plazas and Monuments P 219,514.94
254 Artesian Wells, Reservoirs, Pumping Stations and Conduits P 7,664,366.40
Total P 7,883,881.34
Grand – Total P 29,747,573.13
Less : Accumulated Depreciation
302 Land Improvements P 52,792.67
311 Office Buildings 136,985.38
312 School Buildings 10,741.85
313 Hospitals and Health Centers 12,534.57
314 Market and Slaughterhouses 83,574.08
315 Other Structures 85,029.69
321 Office Equipment 172,273.30
322 Furnitures and Fixtures 37,715.85
323 IT Equipment & Software 484,433.45
326 Machineries 1,847,992.50
329 Communication Equipment 68,893.60
333 Medical, Dental and Laboratory Equipment 13,652.82
334 Military and Police Equipment 5,197.50
341 Motor Vehicles 601,160.87
350 Other PPE 247,876.24 P 3,860,854.37
PROPERTY, PLANT AND EQUIPMENT, NET p 25,886,718.76
Property, Plant and Equipment were depreciated using straight-line method with 10% residual value on its total balances. An inventory committee was already created and in the process of gathering data, conducting inspection and appraisal of the above properties in order to examine its existence, proper valuation and generate Detailed Schedule of Inventory.
Note 5 – PAYABLES ACCOUNTS
Accounts Payables represent the unpaid balance of CY2011 obligations/indebtedness to suppliers arising from the purchase of goods and services.
Note 6 – INTER – AGENCY PAYABLES
This account includes the following:
Accounts Amount
412 Due to BIR P 171,013.34
413 Due to GSIS 284,218.72
414 Due to PAG-IBIG 50,886.16
415 Due to PHILHEALTH 33,806.88
416 Due to Other NGA’s 395,223.39
417 Due to Other GOCC’s (437.90)
418 Due to LGU’s 497,932.08
Total P 1,432,642.67
Note 7 – OTHER LIABILITY ACCOUNTS
This account includes the following:
Accounts Amount
429 Tax Refunds Payable P 3,164.42
439 Other Payables 245,947.69
Total P 249,112.11
Tax refund payable represent the overwitheld tax on compensation of CY2010. The other liability accounts represent the amount collected or withheld from officers and employees for the account of private associations/entities in payment for salary loans.
Note 8 – LOANS PAYABLES – DOMESTIC
The Department of Finance on CY2005 and CY2006 grant, thru the Municipal Development Fund Office, a loan amounting to P3,736,737.39 to the Municipality, payable in 15 years with grace period of 3 years under Community Based Resource Management Project (CBRMP II). The said funds were used to purchase farm equipment and cargo truck, improvement of water system and constructions of farm to market roads and other infrastructures which are essential to the promotion of the general welfare of the community.
Note 9 – DEFERRED CREDITS
Deferred Real Property Income represent the reciprocal account for Real Property Tax Receivable that was recognized at the beginning of the year.
Note 10 – GOVERNMENT EQUITY
Details of this account were presented as follows:
Government Equity – Beginning Balance P 26,378,440.87
Adjustment to Beginning Balance
Add(Deduct)
Current Operations 299,964.65
Prior Year’s Adjustments – Erroneous Entry (259,415.05)
Government Equity – Ending Balance P 26,418,990.47
Prior years adjustments represents the liquidation of cash advances for confidential and intelligence fund amounting to P200,000 for CY2009 and CY2010, under credit notice no. 2010-11-664-L, 2011-03-179-L and 2011-08-320-L and the remaining amount represents the correction of erroneous entry and liquidation of cash advances for travel. Result of operations for CY2011 shown P299,964.65 net income.
Note 11 – LOCAL TAXES
Breakdown of this account includes the following:
Accounts Amount
582 Business Tax P 195,020.00
583 Community Tax 46,897.33
588 Real Property Tax 264,201.26
954 Discount on Real Property Taxes 78,018.04 186,183.22
599 (1) Fines and Penalties – Local taxes 9,026.37
599 (2) Fines and Penalties – Local taxes 28,076.50
Total P 465,203.42
Note 12 – PERMITS AND LICENSES
This account includes the following:
Accounts Amount
601 Fees on Weights and Measures P
605 Permit Fees 60,674.70
606 Registration Fees 16,091.00
608 Other Permits and Licenses 799.30
609 Fines and Penalties – Permits and Licenses 401.50
Total P 77,966.50
Note 13 – SERVICE INCOME
Breakdown of this account includes the following:
Accounts Amount
613 Clearance and Certification Fees P 84,081.75
616 Garbage Fees 2,847.00
617 Inspection Fees 5,405.00
619 Medical, Dental and Laboratory Fees 20,085.00
628 Other Service Income 139,978.50
Total P 252,397.25
Note 14 – BUSINESS INCOME
This account includes the following:
Accounts Amount
633 Income from Cemetery Operations P 75.00
636 Income from Markets 248,758.17
637 Income from Slaughterhouses 25,123.00
639 Income from Waterworks Systems 1,468,139.55
649 Fines and Penalties – Business Income 96,709.39
Total P 1,838,805.11
Note 15 – PERSONAL SERVICES
Details of this account were presented as follows:
Accounts Amount
701 Salaries and Wages – Regular P 9,788,752.73
711 Personnel Economic Relief Allowance (PERA) 1,056,000.00
713 Representation Allowance (RA) 978,600.00
714 Transportation Allowance (TA) 978,600.00
715 Clothing/Uniform Allowance 176,000.00
716 Subsistence, Laundry and Quarter Allowance 99,000.00
717 Productivity Incentive Allowance 64,000.00
720 Honoraria 7,200.00
721 Hazard Pay 41,073.00
724 Cash Gift 220,000.00
725 Year End Bonus 816,141.50
731 Life and Retirement Insurance Contributions 1,174,737.13
732 PAG-IBIG Contributions 52,800.00
733 PHILHEALTH Contributions 118,987.50
734 ECC Contributions 48,222.76
742 Terminal Leave Benefits 261,996.68
749 Other Personnel Benefits 821,119.62
Total P 16,703,230.92
Note 16 – MAINTENANCE AND OTHER OPERATING EXPENSES
This account includes the following:
Accounts Amount
751 Traveling Expenses – Local P 637,252.79
753 Training Expenses 501,850.00
755 Office Supplies Expenses 394,462.00
756 Accountable Forms Expenses 64,789.00
759 Drugs and Medicines Expenses 271,884.89
760 Medical, Dental and Laboratory Supplies Expenses 30,145.00
761 Gasoline, Oil and Lubricants Expenses 247,432.46
762 Agricultural Supplies Expenses 2,720.00
765 Other Supplies Expenses 208,824.73
767 Electricity Expenses 1,788,236.65
771 Postage and Deliveries 2,240.00
772 Telephone Expenses – Landline 27,316.65
773 Telephone Expenses – Mobile 189,280.00
778 Membership Dues and Contributions to Organizations 16,200.00
786 Subscriptions Expenses 3,669.00
794 Environment/Sanitary Services 218,924.60
795 General Services 1,508,325.00
796 Janitorial Services 144,620.00
811 Repairs and Maintenance – Office Buildings 194,369.79
814 Repairs and Maintenance – Markets and Slaughterhouses 34,578.32
815 Repairs and Maintenance – Other Structures 203,730.50
821 Repairs and Maintenance – Office Equipment 10,560.00
823 Repairs and Maintenance – IT Equipment and Software 12,400.00
829 Repairs and Maintenance – Communication Equipment 1,500.00
841 Repairs and Maintenance – Motor Vehicles 89,991.10
851 Repairs and Maintenance – Roads, Highways and Bridges 72,170.00
852 Repairs and Maintenance – Parks, Plazas and Monuments 315,172.28
854 Repairs and Maintenance – Artesian Wells, Reservoirs, Pumping Stattions and Conduits 231,745.53
878 Donations 41,000.00
884 Miscellaneous Expenses 19,904.11
892 Fidelity Bond Premiums 30,450.00
893 Insurance Expenses 498,567.93
969 Other Maintenance and Opertaing Expenses 977,868.73
Total P 8,992,181.06
General Services expenses shown in the above accounts were wages of Job Orders employees for CY2011. Insurance expenses amounting to P494,200.40 represent payment for Medicare sa Masa for the whole year of 2011.
Note 17 – DEPRECIATION EXPENSES
This account includes the following:
Accounts Amount
902 Depreciation – Land Improvements P 52,792.67
911 Depreciation – Office Buildings 136,985.38
912 Depreciation – School Buildings 10,741.85
913 Depreciation – Hospitals and Health Centers 12,534.57
914 Depreciation – Markets and Slaughterhouses 83,574.08
915 Depreciation – Other Structures 85,029.69
921 Depreciation – Office Equipment 168,484.59
922 Depreciation – Furniture and Fixtures 33,733.65
923 Depreciation – IT Equipment 299,129.57
926 Depreciation – Machineries 214,260.00
929 Depreciation – Communication Equipment 62,903.00
933 Depreciation – Medical, Dental and Laboratory Equipment 13,652.82
934 Depreciation – Military and Police Equipment 5,197.50
941 Depreciation – Motor Vehicles 170,138.46
950 Depreciation – Other Property, Plant and Equipment 178,494.98
Total P 1,527,652.81
Property, Plant and Equipment were depreciated using straight-line method, with 10% residual value, on its total balances. An inventory committee was already created and in the process of gathering data, conducting inspection and appraisal of the above properties in order to examine its existence, proper valuation and to generate Detailed Schedule of Inventory.
Republic of the Philippines
Province of Bohol
Municipality of Sikatuna
SPECIAL EDUCATION FUND BALANCE SHEET
As of December 31, 2011
ASSETS
CURRENT ASSETS
Cash in Vault P 2.94
Cash In Bank – Local Currency, Current Account 231,196.70
Special Education Tax Receivable 209,121.83
Advances to Officers and Employees 21,917.06
Other Receivables 64,272.50
Other Structures 42,769.41
TOTAL CURRENT ASSETS P 569,280.44
PROPERTY, PLANT EQUIPMENT
Land and Land Improvements P
Other Structures 108,295.00
Office Equipment 56,921.80
Furniture and Fixtures 27,254.75
IT Equipment and Software 268,343.50
Accumulated Depreciation – IT Equipment (88,451.77) 179,891.73
Sports Equipment 61,516.40
Other Property, Plant and Equipment 24,087.00
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET P 457,966.68
OTHER ASSETS
Other Assets P 7,599.20
TOTAL ASSETS P 1,034,846.32
LIABILITIES AND EQUITY
LIABILITIES
Accounts Payables P 29,674.00
Inter – Agency Payables
Due to BIR 4,573.05
Due to LGU’s 84,897.35
Deferred Special Education Tax Income 209,121.83
Other Deferred Credits 1,074.15
TOTAL LIABILITIES P 329,340.38
GOVERNMENT EQUITY ( Note 1 ) P 705,505.94
TOTAL LIABILITIES AND EQUITY P 1,034,846.32
( See accompanying notes to financial statements )
Republic of the Philippines
Province of Bohol
Municipality of Sikatuna
STATEMENT OF INCOME AND EXPENSES
SPECIAL EDUCATION FUND
For the Period Ended December 31, 2011
TAX REVENUE
Special Education Tax P 330,251.56
Fines and Penalties – Local taxes 35,095.60
GENERAL INCOME ACCOUNTS
Interest Income 1,890.55
TOTAL OPERATING INCOME P 367,237.71
LESS : EXPENSES
Traveling Expenses – Local P 9,984.00
Training Expenses 7,900.00
Office Supplies Expenses 20,560.92
Accountable Forms Expenses 4,446.25
Other Supplies Expenses 12,633.50
Telephone Expenses – Mobile 6,960.00
Discount on Special Education Tax 78,018.04
Other Maintenance and Opertaing Expenses 218,851.00
TOTAL EXPENSES P 359,353.71
NET INCOME/(LOSS) P 7,884.00
( See accompanying notes to financial statements )
Republic of the Philippines
Province of Bohol
Municipality of Sikatuna
STATEMENT OF CASHFLOWS
SPECIAL EDUCATION FUND
For the Period Ended December 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Inflows
Share from Internal Revenue Allotment P
Collection from Taxpayers 330,251.56
Receipts from Sale of Goods and Services
Interest Income 1,890.55
Other Receipts 1,482,387.34
TOTAL CASH INFLOWS P 1,814,529.45
Cash Outflows
Payment to Suppliers/Creditors 263,451.67
Payment to Employees
Interest Expense
Other Disbursements 1,509,966.51
TOTAL CASH OUTFLOWS P 1,773,418.18
NET CASH FROM OPERATING ACTIVITIES P 41,111.27
CASH FLOWS FROM INVESTING ACTIVITIES
Cash Inflows
Sale of Property, Plant and Equipment P
TOTAL CASH INFLOWS P
Cash Outflows
Purchase of Property, Plant and Equipment 111,684.10
TOTAL CASH OUTFLOWS P 111,684.10
NET CASH FROM INVESTING ACTIVITIES P (111,684.10)
NET DECREASE IN CASH P (70,572.83)
CASH AT THE BEGINNING OF THE PERIOD P 301,772.47
CASH AT THE END OF THE PERIOD P 231,199.64
Note 1 – GOVERNMENT EQUITY
Details of this account were presented as follows:
Government Equity – Beginning Balance P 705,957.94
Add(Deduct)
Current Operations 7,884.00
Prior Year’s Adjustment (8,336.00)
Government Equity – Ending Balance P 705,505.94
Prior year’s adjustment represent liquidation of cash advance of Ms. Elizabeth J. Pido for 2010 National Conference for Non Formal Educators in Baquio City.
Republic of the Philippines
Province of Bohol
Municipality of Sikatuna
TRUST FUND BALANCE SHEET
As of December 31, 2011
ASSETS
CURRENT ASSETS
Cash P 962,945.52
Receivables 79,010.00
Due from Other Funds 70,000.00
Other Receivables 42,400.00
TOTAL CURRENT ASSETS P 1,154,355.52
PROPERTY, PLANT EQUIPMENT
Land and Land Improvements
Land Improvements P 2,478,599.85
Buildings
Hospitals and Health Centers P 4,200.00
Less : Accummulated Depreciation (146.63) 4,053.37
Markets and Slaughterhouse 1,519,500.58
Other Structures 4,278,926.62
Less : Accummulated Depreciation (90,491.57) 4,188,435.05
Office Equipment, Furniture and Fixtures
Office Equipment 55,975.00
Communication Equipment 115,000.00
Transportation Equipment
Motor Vehicles 49,700.00
Less : Accummulated Depreciation (44,730.00) 4,970.00
Other Property, Plant and Equipment 114,245.30
Public Infrastructures
Artessian Wells, Reservoirs, Pumping Stations and Conduits 1,760,335.78
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET P 10,241,114.93
TOTAL ASSETS P 11,395,470.45
LIABILITIES AND EQUITY
LIABILITIES
Payables Accounts P
Inter – Agency Payables
Due to BIR 13,144.02
Due to NGA’s 1,945,585.19
Due to LGU’s 390,165.94
Other Payables 339,187.01
TOTAL LIABILITIES P 2,688,082.16
GOVERNMENT EQUITY P 8,707,388.29
TOTAL LIABILITIES AND EQUITY P 11,395,470.45
Republic of the Philippines
Province of Bohol
Municipality of Sikatuna
STATEMENT OF CASHFLOWS
TRUST FUND
For the Period Ended December 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Inflows
Share from Internal Revenue Allotment P
Collection from Taxpayers
Receipts from Sale of Goods and Services
Interest Income
Other Receipts 1,134,119.43
TOTAL CASH INFLOWS P 1,134,119.43
Cash Outflows
Payment to Suppliers/Creditors
Payment to Employees
Interest Expense
Other Disbursements 809,887.29
TOTAL CASH OUTFLOWS P 809,887.29
NET CASH FROM OPERATING ACTIVITIES P 324,232.14
CASH FLOWS FROM INVESTING ACTIVITIES
Cash Inflows
Sale of Property, Plant and Equipment P
TOTAL CASH INFLOWS P
Cash Outflows
Purchase of Property, Plant and Equipment
TOTAL CASH OUTFLOWS P
NET CASH FROM INVESTING ACTIVITIES P
NET DECREASE IN CASH P 324,232.14
CASH AT THE BEGINNING OF THE PERIOD P 638,713.38
CASH AT THE END OF THE PERIOD P 962,945.52